EU’s landmark MiCA legislation added to Official Journal, to come into effect soon

Share IT

Key Takeaways

  • MiCA legislation aims to create a consistent regulatory framework for crypto assets among European Union member states.
  • Key components of MiCA legislation include registration and authorization requirements for issuers of cryptocurrencies, exchanges and wallet providers. 

The European Union’s Markets in Crypto Assets law (MiCA) was recently published in the Official Journal of the European Union (OJEU), marking a significant milestone in the implementation of landmark crypto licensing rules. The comprehensive law, along with related legislation, introduces a range of regulatory measures for the cryptocurrency industry within the European bloc.

One of the key provisions of the law requires crypto wallet providers to identify their customers during fund transfers. Additionally, the legislation offers crypto companies, including exchanges and wallet providers, the opportunity to obtain a license that enables them to operate across the European Union. The law also establishes new governance and financial requirements for stablecoin issuers, aiming to ensure stability and consumer protection in this rapidly evolving sector.

The introduction of MiCA comes at a time when cryptocurrency operators in the United States are facing considerable uncertainty. The Securities and Exchange Commission (SEC) has filed lawsuits against major platforms such as Binance and Coinbase, claiming that the tokens traded on their platforms should be considered regulated financial instruments.

MiCA was signed into law on May 31, following its initial introduction in 2020. The primary objective of the legislation is to create a consistent regulatory framework for crypto assets among European Union member states. By establishing clear guidelines and requirements for cryptocurrencies and related services, the law aims to enhance investor protection and foster trust in the industry.

While the law officially comes into force within 20 days of its publication, the rules will begin to apply on December 30, 2024. However, certain aspects of the legislation will take effect six months earlier, on June 30, 2024.

MiCA encompasses a wide range of cryptocurrencies, digital assets, utility tokens, and stablecoins, aiming to regulate various aspects of their issuance, trading, and custody. The law introduces measures to combat money laundering, ensure transparency, and protect consumers. It also establishes a framework for cross-border supervision and cooperation among national authorities within the European Union.

Share IT
Saniya Raahath
Saniya Raahath

Get Daily Updates

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!